Nowadays, it has been commonplace for consumers to purchase products and services online. That being said, having a secure way of paying for those online purchases has become increasingly important. This is especially true if you are a business owner.
Businesses and firms the world over have now relied on ingenious financial tools like credit, debit, and prepaid cards for business more heavily compared to decades prior. This is not really surprising.
Come to think of it, the ease and convenience online shopping offers is definitely hard to match. Also, the flexibility of purchasing services and goods online as well as the advent of fast pick-ups and deliveries have also enticed more and more people to employ sound financial tools like credit, debit, and prepaid card for business.
Prepaid Cards for Business
Users of prepaid cards for business can definitely attest it offers benefits that are hard to match. For starters, it gives users better financial control because they have the option to accurately track and monitor budgets and expenditures. Apart from that, they also give businesses the autonomy to be able to carry out needed purchases with much ease.
Typically, prepaid cards for businesses are backed up by established financial and credit institutions. Businesses also have the option to have the business name appear on the card. In addition, most are also given the option to just issue the card to a specific person in the company.
Unlike credit cards, prepaid cardholders need to load money onto the card before they can use it for any transactions. Prepaid cards also have one huge distinction, something that sets them apart from the conventional debit and credit cards: they are not tied to any bank account.
In other words, no checking or savings account is used to supply funds to the card. In addition, prepaid cards don’t come with credit features/capabilities. Rather, the cardholder is responsible for loading the desired amount on their prepaid cards.
Aside from helping businesses manage their expenses effectively, prepaid cardholders are also spared from paying those exorbitant interest rates, fees, and other charges. Also, apart from being a way safer option, prepaid cards are considered very effective money management tools as it can limit the cardholder’s spending to the amount that’s available on the card.
How Prepaid Cards are Used Online?
While unfortunate to note, some businesses miss out on the amazing benefits of using a prepaid card because they lack understanding in terms of how it should be used. The good news is using a prepaid card is not really rocket science.
Once money is available on the card, it can be used to cover daily, weekly, or monthly purchases. Cardholders also have the option to use the amount to cover the purchase of a particular product—all up to you!
In many ways, prepaid cards work just like their conventional counterparts. It can be swiped at any merchant where the card is accepted. It can also be used online where it is honoured. Most prepaid cards also come equipped with a security code, card number, and expiration date.
When using a prepaid card for online transactions, just provide the required information, click on submit and the purchase amount will be automatically deducted from the available balance on the card. If the amount available on the card is not sufficient to cover the purchase amount, the transaction will be denied. In most cases however, overdraft options are not available.